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When the Digital Economy Enables Charity for Free :
the Case of Search Engines Workshop on Leveraging Technological Change : The role of Business Models and
Ecosystems 19th march 2014 -‐ IDEALondon
Dr Julie Bas,anu. (University of Lille 1 -‐ LEM) &
Dr Cécile Chamaret (Paris-‐Sorbonne Abou Dhabi University & CRG, Ecole polytechnique)
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Context of research and starUng point
Bridging IT market of search engines and development of sustainability and CSR issues ?
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Value creaUon for chariUes in the digital economy
• Is it possible to create social and/or environmental value through the use of search engines (SE)?
è hybrid business models (BM) at the crossroads between social business and digital economy
è A free service enabling to donate money thanks to its mere usage (cf « economy of freebies »)
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Economy of prescripUon • SE are double-‐sided markets relying on network effects (Jullien,
2010; Perset, 2010)
• New BM of social SE based on the principles of prescripUon economy (Hatchuel, 1995) and that are developing in the digital economy (Benghozi, 2008; Benghozi & Paris, 2007)
• Central role of the market and nonmarket partnerships to create economic and social value (Dyer and Singh, 1998 ; AusUn, 2000; Seitanidi, 2010)
è Partnerships operate a prescripUon regarding the choice of supported causes.
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A « market for virtue »(Vogel, 2005) in the digital economy?
• Using prescripUon to create social value in a niche market – CSR can generate new markets for innovaUve social entrepreneurs
– The economic and social dimensions are intertwined in the acUvity and the cost-‐benefit analysis of the social entrepreneurs (Baron, 2007)
• How can CSR become a subject of prescripUon valued by intermediaries and users?
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A « market for virtue » (Vogel, 2005) in the digital economy?
• CSR can be considered as resource redistribuUon mechanism (Baron, 2007; Carroll, 1979)
• Why are social entrepreneurs are willing to bear the cost of CSR ? (Baron, 2007) – Because it expands the opportunity set of users – Because of an entrepreneurial warm-‐glow
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Case study • First a study of social SE in the French internet
• We began an exploratory study in other internet domains (Europe, US, China)
• We focused on 2 cases that were at some point one success and one failure (Veosearch and Justoopen)
• We try to focus on users to beker understand the success and failure… but we have to reshape the study because of the rapid change of the market and the numerous failures in France contrasUng with the numerous successes in the UK
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Methodology • First study of the French actors : mulUlevel case study
• IdenUfying the BM of each actor according to the criteria which allow to differenUate them from convenUonal engines
• Proposing a typology of social SE
• Tracing the evoluUon in Ume of BMs and compare their trajectories
• Interviews to analyze the moUvaUons of entrepreneurs
• Analysis focusing on idenUfying the key relaUonships and partnerships and the way they were permiYng or not to create value for the user, the entrepreneurs, the chariUes
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Typology of social SE
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The charity SE
• 2 key types of nonmarket partnerships – Technological informal or formal partnership with tradiUonal SE that are providing the technology
– Partnerships with one or several NGOs • Role of user : can choose or not the causes • EvoluUon in Ume – Convergence to a single formalized partnership with the technology provider
– Diversity in the relaUonships with chariUes
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Mapping the market of charity SE
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General model of double prescripUon of social SE
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Offer adver,sers
Demand of Internet users
Prescriber TradiUonal search engine
Prescriber Charity search engine
NGOs
Legend Traditional market of prescription
New market of prescription
Market relationship
Partnership
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RelaUonships with tradiUonal SE market
• The traffic generated by social SE is captured by tradiUonal SE since they manage adverUsing revenue
è Their posiUon is not threatened by social SE but rather
strengthened • The second point is that this configuraUon allows to divert
a part of the adverUsing revenues generated to a social economy. – growing awareness of some users towards the environmental impacts of IT development
– willingness of some expert users or designers to develop IT soluUons meeUng this sensiUvity.
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QuesUons • Why no cooperaUon of technology providers, if their posiUon is not
threatened? – No value for the big players? – What is the value created? The diversificaUon failed for Veosearch,
why? – Need to extend the research to the UK/US social SE and their
diversificaUon into socially responsible plaqorms. hkp://www.goodsearch.com/ hkp://bene.co/
• Why is it a complete failure in France?
– Are we reluctant to donaUons and chariUes?? To technology?? – Need to analyse the moUves and reacUons of users but hard to find
them… – Need to ….
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Merci de votre a4en5on!
Thank you for your a,en.on!
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